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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Securities, managed products, mutual funds and other investments | 19% | - Equity investment considerations - Exchange-traded funds - Fixed income investment considerations - Other investments - Mutual funds - Market indices - Managed products - Managed product investment considerations - Asset classes - Equities - Pooled products - Fixed income securities and products |
| Topic 2: Overview of Canadian securities regulatory framework | 10% | - Role and authority of the Canadian Investment Regulatory Organization - Bank Act and Bankruptcy and Insolvency Act - Investment Dealer registration and individual approval requirements - Canadian Investor Protection Fund - Criminal Code and financial crime - Anti-money laundering requirements - Marketplaces and trading venues - Other investment industry regulators and agencies - Role and authority of the Canadian Securities Administrators and provincial/territorial securities and derivatives regulators - Confidentiality, privacy, anti-spam and shareholder rights legislation - Clearing agencies |
| Topic 3: Derivatives | 5% | - Listed and over-the-counter derivatives markets - Transactional elements of futures and options - Futures, forwards, swaps and contracts for difference - Options - Uses of derivatives - Prohibited derivative trading practices - Derivative trading strategies - Derivative account administration |
| Topic 4: Market integrity, trade execution and settlement | 12% | - Order types - Investment banking, research and corporate finance - Universal Market Integrity Rules - Gatekeeping for manipulative and deceptive practices - Derivative trading agreements - Margin requirements - Order entry, trade processing, settlement and delivery - Account types - Order variations, cancellations and corrections - UMIR gatekeeping obligations - Reporting obligations - Order confirmation requirements |
| Topic 5: Conflicts of interest and ethics | 15% | - Outside activities of Approved Persons - Conflict identification, avoidance, addressing and disclosure - Managing conflicts of interest - Ethical and legal responsibilities to clients - Positions of influence - Client confidentiality - Ethical principles and standards of conduct - Personal financial dealings with clients - CIRO and other ethical standards - Information barriers and restricted lists - Cybersecurity and confidential information - Ethics and regulatory rules |
| Topic 6: Client complaint handling and reporting | 5% | - Client recourse options - Settlement agreements with clients - CIRO and provincial regulator roles in complaint handling - Client issues and potential liability - Investment Dealer complaint reporting obligations - Complaint policies, procedures and recordkeeping - Investment Dealer obligations to clients |
| Topic 7: Market and company analysis | 8% | - Technical and statistical analysis tools - Macroeconomic factors and policies - Basic economic theories - Macroeconomic effects on financial markets - Market theories and stock market behaviour - Company regulation, disclosure and investor rights - Company performance analysis - Economic information and indicators - Industry performance analysis |
| Topic 8: Prospective client relationships | 10% | - Costs, fees, turnover and taxes - Third parties and professional advisers - Client recordkeeping - Retail and institutional clients - Client relationship model - Retail client information and risk profile - Institutional client qualification - Investment Dealer onboarding process - Account agreements and welcome documentation - Accredited investors and exemptions |
| Topic 9: Scope of client relationships | 15% | - Account appropriateness - Investment performance benchmarks - Institutional Investment Dealer services - Clients residing in the United States and other foreign jurisdictions - Know-your-product requirements - Relationship disclosure - Trust, agency and fiduciary duty - Retail Investment Dealer services - Client suitability determination - Investment management styles and strategies - Suitability exemptions - Product due diligence - Institutional client sophistication and suitability exemptions - Investment Representative role and client service - Registered Representative role and client service - Account appropriateness versus suitability - Escalation to subject matter experts |
Hedge fund is required to disclose certain information to investors. What is a key feature of these disclosure requirements in most jurisdictions?
Correct Answer: D 🗳️
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What is a potential risk associated with mutual fund corporations?
Correct Answer: B 🗳️
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How do iceberg orders help reduce market impact and promote liquidity?
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Which of the following is the primary role of a central bank in managing the macroeconomy?
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Which of the following statements best describes the benefit of holding a cumulative preferred share?
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